Maynard keynes aggregate demand theory

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Create a price index for a group of New York Jets fans consuming the following market basket of goods. Use 2010 prices as the base year.

Market Basket Quantities Prices

2020 2021 2020 2021

bottles of Pepsi 12 12 $ 2.50/bottle $2.00/bottle

Jets T-shirts 12 12 $ 15/shirt $20/shirt

football tickets 16 16 $ 25/ticket $30/ticket

What is the price of the basket of goods in 2020?

What is the price of the basket of goods in 2021?

Using 2020 as the base year, what is the price index in 2021?

By how much have prices risen?

Complete the following equation representing John Maynard Keynes' Aggregate Demand Theory:

AD =

Reference no: EM133124971

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